Total loss vehicle in Quebec: how the settlement is calculated, and how to challenge it
On a total loss, neither the price you paid nor the loan balance matters: the value at the date of the loss does. How insurers get there, what the F.A.Q. 43 endorsements change, and how to contest a low figure.
On a total loss, neither the price you paid nor the loan balance matters: the value at the date of the loss does. How insurers get there, what the F.A.Q. 43 endorsements change, and how to contest a low figure.
The value that counts
Not the purchase price, not the loan balance, not the replacement cost: the basis is the actual cash value just before the crash. That is why loan insurance or a replacement guarantee exists separately.
When a vehicle is a total loss
The question is whether the cost of safe repairs exceeds the value. The Civil Code presumes repairs to be too costly when their cost exceeds the value of the insured property, and insurers in practice declare a total loss above a percentage of the value that varies from one insurer to another. Ask which threshold applies to your policy.
How the value is established
Comparable vehicles of the same year, model, trim and similar mileage in your region, adjusted for condition and options; documented maintenance and accessories you declared; and possible deductions. Always ask for the valuation, the comparables and the method in writing.
The F.A.Q. 43 endorsements
43C agreed amount, 43D no depreciation, 43E replacement value and 43F increased settlement. Since January 15, 2025, the cash payout of the third 43E option is calculated on the increased purchase price indexed to the consumer price index for vehicles, with no obligation to replace the vehicle.
If the figure seems low
Ask for the written basis, check the comparables, produce your evidence, request an independent counter-appraisal, then use the insurer's complaint process and the AMF before a civil claim.
Official sources
- Autorite des marches financiers — auto insurance
- Groupement des assureurs automobiles
- Civil Code of Quebec